The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of Activity Maintenance Costs January 640 $ 4,320 February March April 400 3,120 520 3,720 360 2,940 May June July August September October November 630 4,470 410 3,080 400 3,150 4,590 610 4,380 590 4,170 460 3,420 December Sum Average 3,280 6,120 $ 44,640 510 3,720 A coefficient 851.25 B coefficient 5.6250 Standard error of the a coefficient 101.960 Standard error of the b coefficient Standard error of the estimate 0.19575 R2 T-value a T-value b 71.764 0.98803 8.349 28.735 Using the high-low method to estimate cost behavior, 450 maintenance hours in a month would mean the maintenance costs would be budgeted at: Multiple Choice $3,300. $3,490. $3,435 $2,910.